A short sale is when the owner of the home owes more on the mortgage than the home can be sold for. The owner will put the house on the market as a short sale. Once a contract is written on the property, the listing agent will submit it along with a short sale package.
The short sale package includes the owners tax returns, pay stubs, bank statements, financial work sheet and a hardship letter explaining to the bank why they are needing to short sale the house. The bank will decide on whether the offer is acceptable or negotiate another price and terms.
If you are considering purchasing a short sale there are many things to think about. The most important is if you have the time to wait for the banks response and ultimate approval. If you need to be in a house by a specific date you may want to avoid looking at short sales. The process can take several months and you want to make sure the Realtor representing the seller has allot of experience actually closing short sales.
Short sales can be purchased for less than the going market in most cases. After all you are taking a chance on whether the bank will accept your offer and eating up your time in the process.
Tony Ray and I specialize in short sales. We have several Attorneys and and Real Estate professionals who refer them to us. We have a high success rate listing and closing short sales. It can be an intimidating process but that is what we are here to help you with.
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